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HomeMy WebLinkAbout1997-04-16 Council MinutesKENAI CITY COUNCIL - REGULAR MEETING APRIL 160 1297 7100 P*M. RENAI CITY COUNCIL CMMERB http: //w"e xenai. net/city 1. Pledge of Allegiance 2. Roll Call 3. Agenda Approval 4. Consent Agenda *All items listed with an asterisk (*) are considered to be routine and non -controversial by the Council and will be approved by one motion. There will be no separate discussion of these items unless a Council Member so requests, in which case the item will be removed from the Consent Agenda and considered in its normal sequence on the agenda as part of the General Orders. 8 • BCgfIDULED PVHL=C egam" (10 Minutes) 1. Fire Training Center (PRISM) - • a. Bob Reynolds, British Petroleum b. Maurice Rank, President of Engineer Svs., Inc. (ESI) c. Fran Reinhardt, CEO, ESI d. Terry Haymond, Symtron 2. Renal Recreational Ice Rink - Nate Kiel and Kathy Ehrhardt 3. Fr1eve Air Service, Inc. - Lisa Priewe, President CO PUBLIC XXhRX a 1. Re190lution No. 97-19 - Awarding a Four Year Lease of the Kenai Dock Station No. 2, to Snug Harbor Seafoods, Inc. for the Yearly Base Bid of $15#000 and a Two Year Lease of the Kenai Dock Station No. 31 to Snug Harbor Seafoods, Inc. for the Yearly Base Bid of $9,000. 2. i997/98 Liquor License Renewal - Kenai Joe s - - Beverage Dispensary License PROTEST D • tIM-T a RERMI 1. Council on Aging 2. Airport Commission 3. Harbor Commission • Page 1 of 3 4. Library Commission 5. Parks & Recreation Commission 6. Planning & Zoning Commission 7. Miscellaneous Commissions and Committees a. Beautification Committee b. Historic District Board c. Challenger Board d. Kenai Visitors & Convention Bureau Board e. Alaska Municipal League Report N. NIEMEN 1. *Regular Meeting of April 2, 1997 -NOT AVAILABLE- • _ > • :I• J Q. OLD BUSINESS 1. Bills to be Paid, Bills to be Ratified 2. Purchase Orders Exceeding $2,500 3. *Ordinance No. 1737-97 - Amending the Official City of Kenai Zoning Map for Certain Lands, FBO Subdivision No. 6, Located Within the E1/2 NE1/4 Section 32, T6N, R11W, S.M., City of Kenai, Kenai Recording District, Kenai Peninsula Borough, Alaska. 4. *Ordinance No. 1738-97 - Increasing Estimated Revenues and Appropriations by $15,180 in the Congregate Housing Enterprise Fund for the Replacement of Thirty-nine Windows. 5. *Ordinance No. 1739-97 - Amending the Official city of Kenai Zoning Map for Certain Lands, Buffalo Run Subdivision, a Replat of Tract "A" Swires Subdivision Located Within the NE1/2 SW1/4 Section 35, T6N, R11W, S.M., City of Kenai, Kenai Recording District, Kenai Peninsula Borough, Alaska, 6. Disonssion - City of Kenai Fuel Supply X==TIVS 9EeSION - Inlet Woods Litigation 1. Mayor 2. City Manager Page 2 of 3 3. Attorney . 4. City Clerk 5. Finance Director 6. Public Works Director 7. Airport Manager 170 • • 1. Citizens (five minutes) 2. Council ,_-... • iji._"i ...-t�Y. Page 3 of 3 KENAI CITY COUNCIL MEETING MINUTES APRIL 16, 1997 KENAI CITY COUNCIL CHAMBERS MAYOR JOHN J. WILLIAMS# PRESIDING Mayor Williams called the meeting to order, at approximately 7:04 p.m. in the Council Chambers in Kenai City Hall. A -I* PLEDGE OF ALLEGIANCE Mayor Williams led those assembled in the Pledge of Allegiance. A-2. A Roll was taken by the Acting City Clerk. Present: Williams, Smalley, Moore, Measles, Bannock and Bookey. Absent: Swarner. A-3. Mayor Williams requested the following changes to the agenda: ADD TO: 9-3, Will Johnson, Owner of Yute Airlines. ADD TO: R-2, Purchase order to Worthington Ford for purchase of a new police car in the amount of $21,050. MOTION: Councilman Smalley MOVED to approve the agenda as amended and asked for unanimous consent. No objections. 00 ORDERED. Councilman Measles asked that Item E-1 be changed to remove the reference to minutes from the April 2, 1997 meeting because they were not available. No objections. MOTION: Councilman Smalley MOVED to approve the consent agenda as amended and asked for unanimous consent. No objections. BO ORDERED. B-1. Fire Training Center - Mayor Williams announced that there would now be a presentation regarding the Fire Training Center by Bob Reynolds from British Petroleum, Maurice Rank from Engineer Services, Inc. (ESI), Fran Reinhardt, CEO of ESI, and Terry Haymond from Symtron. Mayor • KENAI CITY COUNCIL MEETING MINUTES APRIL 16, 1997 PAGE 2 Williams stated that ESI is a wholly -owned subsidiary of Symtron and is involved in professional services toward the operation of the proposed facility. The discussion will be about the possibility of expanding the Fire Training Center, Williams said, to a great degree in a manner beneficial to the City of Kenai. He referred to an item listed in his report to Council regarding his recent trip to Russia: "Signing of the Charter for the 'Sakhalin Alaska Training Institute' by Governors Knowles, Governor Farkhutdinov and Dennis Steffy for the University and the Russian director for the institute." Mayor Williams said that the implications of the Charter and of the presentation to be heard tonight is that there will be a great deal of interchange, training and personnel moving back and forth between Sakhalin and Kenai through the use of the facility presently being built. Williams stated that while in Russia they also dedicated a non-stop regular airline service from Anchorage to Yuzhno-Sakhalinsk for passengers and freight, and a new Alaska Business Center was dedicated in Sakhalin so business people traveling back and forth have a place to work. Mayor Williams called for a recess so a slide presentation could be made. (Recessed at 7:12; re -adjourned at 7:29.) 2-2. Kenai Recreational Iae Rink - Kathy Ehrhardt spoke first. She stated she has lived in Kenai for 12h years and that she feels strongly that the proposed ice rink "needs to be built." Ehrhardt said she volunteers with kids in the local schools as a coach and believes that kids are happier and healthier when they have opportunities to participate in recreational and sporting activities. Kids have so many negative influences upon them, Ehrhardt said, that parents and communities need to provide positive, constructive_ activities for kids to participate in. She said she believes this proposed ice rink would provide those things, both in organized and unorganized formats. She urged Council to fund the building of the rink to increase the quality of life in Kenai and provide another reason to make Kenai a great place to raise a family. Ehrhardt also praised the Parks and Rec Department for maintaining and grooming the ski trails this last winter. She said that was "a wonderful addition to life in Kenai." Mayor Williams asked City Manager Ross to give the Council his idea of a possible way to fund the ice rink. Ross stated that the City owns land on Lawton Street along the golf course that is restricted under the Bureau of Recreation. The lots have utilities to them, he said. If Council wanted to use that land for the ice rink project, possibly the City could approach the BOR for release of that land so the City could sell the lots and L_J KENAI CITY COUNCIL MEETING MINUTES APRIL 16, 1997 PAGE 3 use the proceeds to build the ice rink. This plan, he said, would also have the benefit of getting those lots on the tax rolls. On the "down side," Ross said, is the fact that the ice rink could not be built this year because the funding procured this way would take time. Councilman Moore asked Ross if he knew the assessed value of those lots. Ross did not. He said they are high value property, though. Mayor Williams said they might be valued at $40,000 or $50,000 each because of their prime location. Williams said he thinks there are 13 lots platted, with the rest in a block. He said he thinks they would sell very quickly. The question, he said, is whether the BOR would allow sale of that land to obtain funds for recreational use. Nate Kiel spoke. He said he has resided in Kenai since 1970. He reviewed the history of the ice rink project which, he stated, began in 1985 with the formation of a committee. In May 1991 a petition and endorsements from local citizens demonstrated the need for an ice rink, Kiel said. In February 19921 the City commissioned a 7-member task force to research the feasibility of building an ice rink, Kiel reported. Based on findings at that time, the City named the ice rink its "top capital project for economic development and tourism" in 1993, Kiel said. The City and the task force agreed that a "bare bones, refrigerated rink" at that time could be built for about $1.8 million, he said. The plan and funding never developed, and the task force declined to endorse a bond proposition to fund the facility, said Kiel. Another bond proposition later failed at the polls, Kiel stated. Kiel said that in late 1996 another group of citizens began to look again at this project. The Kenai Parks & Rec Commission - recommended that the group form an official task force and bring forth an official proposal for their endorsement, he said. The task force was formed with members of major baseball, softball, hockey and figure skating organizations, as well as folks from recreational interests. On April 3, 1997 the task force made a formal presentation to Parks & Rec which endorsed the proposal and passed it on to the City Council, Kiel said. Kiel reviewed the highlights of the current proposal. He read, "We believe the time has come for the City of Kenai to provide its residents with a multi -purpose recreational shelter." Kiel said that statement shows how the task force has lowered its expectations and is now asking only for a covered ice rink and multi -purpose shelter for recreational use. Kiel stated that the rink in the North Kenai area has had a dramatic increase in use 40 in just one year; Soldotna has the Sports Center as well as four maintained rinks; the City of Kenai put in Nordic ski trails • U C� J KENAI CITY COUNCIL MEETING MINUTES APRIL 16, 1997 PAGE 4 which are highly successful already, but the ice rink at KCHS is not useable because of its age and location. Kiel pointed out to Council the information included in the. packet describing a cost-effective ice rink which would be self- sufficient and service a broad user base. He said the task force is asking the Council to appropriate $493,000 to build a covered ice rink with a short, stem wall and columns with a roof and lights. Kiel pointed out that the first phase focuses on site excavation, building foundation, frames, steel roof, asphalt surfacing, and rink dasher boards. "We feel very comfortable with those numbers; we've included very generous contingencies," Kiel stated. Kiel said the committee makes no recommendation as to the specific site, but it is their recommendation that a site be chosen close to KCHS and Kenai Middle School. He stressed the point that the proposed rink would be a self-sustaining facility. He said Nikiski has had no problem with their facility being self-sustaining. The committee recommends that the City handle scheduling of the facility's use, Kiel said; but regarding maintenance of the facility there are a few options offered in the proposal because Parks & Rec Director Bob Frates had expressed his concern that his staff would not be able tohandle the increased work load. Kiel said the committee used a figure one-half the amount of what the Sports Center charges and the same as what Nikiski charges for use of the rink -and was still able to show the facility making money because there would be no heating bills and no City employees to maintain the building. He said the committee tried to be extremely practical in its design of the facility. Kiel stated that the committee has acquired a list of over two dozen organizations who endorse this proposal for an ice rink in Kenai. He said the committee recommends the facility be used 5 to 6 months out of the year as a covered rink for recreational skating, figure skating, hockey, broom ball, etc., that the facility be used in April and May as a spring training facility for softball and baseball, that in June through September it be used for other recreational interests, and if there are gaps that the facility be rented out. Regarding the discussion about the lots on Lawton fund the ice rink. Kiel said he and the committee generally a would take. time ago an more delays* d good idea; but the problem with it is He said the ice rink should have been that the project should move forward being sold to think it is the time it n built a long now -without KENAI CITY COUNCIL MEETING MINUTES APRIL 161 1997 PAGE 5 in closing, Kiel said that even though we live in an area where most of our year is winter and we don't really have adequate outdoor recreational opportunities, the City currently spends thousands of dollars every year to provide recreational opportunities and expanded services for summer visitors. Kiel stated, "We all know the value that sports and recreational activities have in the growth and development of our youth. Some of the children in this room this evening will be the leaders of our city tomorrow. Let's build this facility for the whole community —especially the kids." Councilman Smalley asked if the proposed facility would be used for the school hockey program. Kiel said that the committee did not foresee it that way overall. He said they want it used for a wide variety of sports and activities from "broomball to baseball, soccer to softball, skateboarding to rollerblading, and basketball to badminton," for example. Mayor Williams asked City Manager Ross if he knew when the BOR might respond to the letter regarding sale of the Lawton Street land. Ross said the letter was sent approximately ten days ago. Ross stated that Council needs to decide if that's what they want to do with the land. If so, then Ross would like to work with representatives of the task force to make a group presentation to BOR. Councilman Bannock asked if BOR is federal or state. Ross answered that it's federal money that is funneled through the state. Does permission come at the federal level, Bannock asked. Mayor Williams stated that• the City has been negotiated on two separate occasions to get these lots freed up. He said that the Administration and Attorney Graves came up with this idea of using the proceeds from the sale of the land to build a recreational facility. Councilman Bookey stated that he likes the idea. He said it would put the lots into the private sector and the ice rink would be funded. MOTION= Councilman Bookey MOVED to have Administration approach Bureau of Recreation regarding selling the lots along Lawton and using the proceeds to build an ice rink. Councilman Smalley BECONDND the motion. No objections. BO ORDERED., Nate Kiel stated again that the committee is worried that proceeding through BOR will take too long. City Manager Ross asked Kiel if he could meet with the committee and involve them in the negotiations with BOR—giving the committee a sense of the progress of the project. Kiel agreed to that. • KENAI CITY COUNCIL MEETING MINUTES APRIL 16, 1997 PAGE 6 Mayor Williams said that if BOR says yes to this plan the project might be hurried along by having Council advance the money for the project and be reimbursed by the sale of the lots. Councilman Bookey said he agrees with that as long as the City has a firm commitment from BOR. Councilman Smalley said the location of the facility will need to be determined with the Borough. City Manager Ross said he would like to look at site selections with the committee. He said then the committee and the City jointly could approach the Borough administration. Mayor Williams reminded Council that the site between Rogers Road and the high school is mental health property and the Borough does not have title to it. He suggested we ask the Borough to contact the State again immediately to see if anything has been done with it. B-3. Priewe Air Bervioe, Ine. - Lisa Priewe, President Lisa Priewe spoke. She said she grew up on the Kenai Peninsula and her parents have lived here since' 1970. She stated that she and her husband started Priewe Air Service in 1993, currently providing air charter services primarily for the oil industry. Priewe said Priewe Air Service would like to expand their services and provide air transportation for passengers and freight to the Kenai Peninsula. Priewe Air Service is dedicated to safety, she said. She said the reason she wants to expand to the Kenai Peninsula is to bring "safety back into aviation." Their chief pilot has over 20,000 hours flight time and a spotless safety record, she reported. Regarding association with Yute Air, Priewe reported she wanted to provide terminal space for Yute Air's people; however,-Priewe was not able to take on the financial obligation at this time. They talked with Yute Air and Merlin Express and feel that together they can all do an excellent job for the community and the oil industry. Priewe introduced Will Johnson, the owner of Yute Air. Will Johnson said that Yute Air was originally formed in Dillingham as Bob Harris Flying service. In 1973 it was purchased by Phillip Bingman(?) who changed the name to Yute Air, which is a distortion of the Yupik word "yuut" which means "people." Yute Air operated under Mr. Bingman until 1988 when he lost his operating certificate after the Homer accident and a strict interpretation of the rules and regulations. Johnson said he (Johnson) is one of four former employees who purchased the company and got the operating certificate • reinstated; he is now the only owner. Yute Air began under Johnson in 1990 in Bethel. They have now expanded to about 30 KENAI CITY COUNCIL MEETING MINUTES APRIL 16, 1997 PAGE 7 • small planes operating in western Alaska -Dillingham, Antiak, Nome, Bethel and Kotzebue. They will be starting up in King Salmon with two planes this summer. Yute Air began working with Merlin Express approximately one year ago providing charter service to King Salmon for a major lodge there; and in 1996 they began services in Bethel and the other towns. He said they would like to begin service in Kenai on May 24, 1997. They are operating the 19 passenger Fairchild Metro 3, with four of the planes having the high gross weight option. Most of them are operated with 17 passengers to allow for more baggage room (almost 1400 lbs). Johnson said he proposes 10 flights a day to Kenai starting at 5:30 a.m. with the last flight returning to Anchorage just after midnight. He said there would be a mid -afternoon gap, otherwise the flights would operate every 1'h hours. The Metro is fast and efficient; air time between Kenai and Anchorage will take about 14 minutes -with total time being 18 - 20 minutes. Johnson stated their rates will run between $36 and $44 one way. Mayor Williams asked Randy Ernst what the airport is doing about lease space. Ernst responded that Priewe has chosen the office between Southcentral and ERA. Agreements are made; all that's left is to sign the documents, he said. Council welcomed Priewe Air Service and Yute Air to Kenai. .7 J y_1 c,Z Cr.1 C-1. Resolution No. 97-19 - Awarding A Four Year Lease of the Kenai Dock Station No. 2 to Snug Harbor Seafoods, Inc. for the Yearly Base Bid of $15,000 and a Two Year Lease of the Kenai Dock Station No. 3 to Snug Harbor Seafoods, Inc. for the Yearly Base Bid of $9,000. NOTION: Councilman Bookey MOVED to approve Resolution No. 97-18. Councilman Smalley SECONDED the motion. There were no public comments. Keith Kornelis stated that the only responsible bidders were Snug Harbor Seafoods and R&J Seafoods. However, inside R&J's envelope they said "no bid." Two other envelopes were received, but they had no name on the outside as required so they were not considered responsible bids. I*No objections to unanimous consent. PASSED by unanimous consent. • KENAI CITY COUNCIL MEETING MINUTES APRIL 16, 1997 PAGE 8 C-2. 1997/98 Liquor License Renewal - Kenai Joe's - PROTEST - Beverage Dispensary License. MOTION: Councilman Smalley MOVED to send a letter to ABC Board stating non -objection if account is current by May 7, 1997. Councilman Bookey BECONDLD the motion. No objections. 80 ORDERED. -T,= Ds 2 MISSION/COMMITTER REPORT@ D-le Council on Aging Pat Porter advised Council that she had received a call from Senator Ward's office regarding whether she wished to request any capital funding this year. She then sent him a request for $35,000 for the purchase of a new Meals On Wheels van. The old one has 140,000 miles on it, and the maintenance shop is recommending it be replaced. Rep. Hodgins' office called her and asked for information about the request. D-2. Airport Commission Councilman Measles reported he did not attend the meeting due to the budget work session being held at the same time. He said there is a memo in the packet about rental car leases. Administration is advising against it, but the Commission voted to proceed with their original recommendation of extending the leases for five years after renovation of the spaces and that the leases include the new square footage after renovation. He stated Council needs to make a decision. Ross said that he supported the idea when Mr. Thibodeau came to him and said the car rental agencies wanted to renovate their spaces for their own purposes and at their own expense. Ross said he made it clear to Thibodeau that there would be no exclusivity and that the agencies could lose their spaces at bidding time. The agencies then made a request through the Airport Commission that, in order to amortize their expenditures, that consideration be given to extending their leases five years (they would normally come up in two years). Ross told Council that he feels it is not good policy; and he considers it anti -competitive. Ross said that he and Randy Ernst feel strongly that the leases should go out for RFP when they lapse in two years. To review, Randy Ernst stated that car rental agency people came to the Airport Commission with a proposal to reduce the number of spaces at the airport from five to three, making the spaces • KENAI CITY COUNCIL MEETING MINUTES APRIL 16, 1997 PAGE 9 larger. The only expense to the City would be putting in additional ceiling runners and some carpet patching. There are currently five year leases on the agencies that are up June 30, 1999. Dan Van Zee stated that the estimated cost of the project is between $8,000 and $10,000 total. Councilman Bookey stated he would like to see the City do the renovations itself. He said he isn't sure the agencies could get a return on their money in just two years. Ernst said he and the City Manager discussed this option and they compared it to the restaurant now being renovated in the airport. . Ross reminded Council that this project was proposed by the vendor. He said the City wouldn't have planned to do the renovations. He said the option is "the status quo" until the leases expire. Councilman Moore asked what the history has been regarding the leasing of the spaces. Ernst said all of the leases were renewed with the exception of an additional agency that wanted to come in. At that time there was nothing to bid -everyone pays the same percentage. He said for one space they used a lottery system and drew names. Mayor Williams said the idea of reducing the number of vendors to three has been before Council in the past. °Councilman Bannock stated that Council reduced the number of counter spaces NOT the number of agencies. The decision was made by adding square footage to what was already there because of space -and it was the vendors themselves who decided there should be three vendors and three spaces. He said the Council agreed to the proposal based upon the fact that the vendors would pay for the renovations. Therefore, he said, the City has not changed its position on any of this issue. Bannock stated that to change the lease at this point is a bad idea and bad policy. He said that if Council does not want to change the leases the vendors may decide not to do the renovations, but that is a business decision only they can answer. Mayor Williams stated that he views a lease as something that can be re -negotiated between the parties. Williams asked for a motion. NOTION: Coun41 cilman Measles MOVED to accept the Airport Commission's. proposal to extend the leases on the car rental agencies to five years following completion of the renovations and that the leases • • • KENAI CITY COUNCIL MEETING MINUTES APRIL 16, 1997 PAGE 10 be expanded to include the new square footage added as a result of the renovation. Councilman Moore SECONDED the motion. Councilman Moore said he still has a problem with allowing the vendors to spend that kind of money on renovations without giving them a chance to recoup their investment. Councilman Bookey said at this point it is still their decision whether they want to spend that money. Councilman Smalley concurred with Councilman Bookey. Dan Van Zee spoke to the issue. He told Council they have three businesses at the Airport that have met their obligations, are current to the City and Borough, and are asking to lease additional space from the City at a time when business seems to be declining in Kenai. He said they are trying to go forward with confidence expanding their businesses and leasing very valuable space from the City. He said they are paying maybe 15 to IS times what the average commercial space is worth in the City. Van Zee stated these are not "high flying" kinds of businesses —they are businesses that are struggling to survive. Auto expenses go up every year, but rental rates don't go up. He said the agencies are not asking anything from Council. He said they are willing to spend their own money to remodel and add value to the property; they only need time to recoup their investment. Van Zee stated there has been too much competition in the market, and Payless has pulled out so maybe the remaining vendors can possibily make it now. He asked that Council take a realistic look at these businesses and determine what the profitability is. "I don't think you understand the rental car business and I don't think anybody has taken the time to try to understand the rental car business," he said. He stated people think that the profitability in the rental car business is in renting cars, but that is just not true. He said that as the agencies rent out the cars they are building equity in an asset - that they can later sell. Van Zee said that just a few years ago Council decided to "roll over" the leases without RFP's, and now this. He said it's confusing. Ernst said that when those leases were rolled over they were already up; these leases aren't up for two more years. Williams said again that it is usual for leases to be renegotiated between parties. VOTES Bookey: No Moore: Yes Measles: No Bannock: No Smalley: No Williams: Yes MOTION FAILED. • KENAI CITY COUNCIL MEETING MINUTES APRIL 16, 1997 PAGE 11 MOTION TO RECONSIDERt Councilman Smalley MOVED for reconsideration of this issue at the next meeting. Mayor Williams SECONDED the motion. Mayor Williams said, "We'll move it to the next meeting." D-3. Harbor Commission Councilman Bookey reported that the BLM has said that the City cannot lease some of the property near the dock. He said that the Commission thought the City could do basically whatever they wanted to at the dock, but apparently there are significant restrictions. After some discussion, Council directed Administration to find out what is and is not allowed at the dock by the BLM and petition the BLM to remove those restrictions. Mayor Williams said then the Harbor Commission should take the issue to the Senate as an example of abrogation of states' rights by the federal government. Councilman Bookey stated the City needs to know what all the restrictions are on all the lands from BLM—not just at the immediate dock area. Councilman Bannock asked if it would make sense to hire someone • to be at the dock to direct traffic and assist the boat launching. Councilman Bookey said the problem got much better later in the summer. Councilman Smalley said the rates are in the same range as on other Alaskan rivers. City Manager Ross said his only question on the rate change had to do with the seasonal pass which was suggested to change from $50 to $75. He said $60 would be better because the City wants to encourage seasonal passes to reduce the labor involved in collecting fees and handling money. The launch fee will be changed from $5 to $7, and the fees will be posted at the highway. D-4. Library Commission Councilman Moore announced the next meeting is May 6, and they are still open on Sundays this month. D-5. Parka i Recreation Commission Councilman Bannock reported the Commission met two weeks ago; minutes are in the packet. Nate Kiel made a presentation to them about the ice rink, and the Commission supported the proposal unanimously. The Commission is asking Council's permission that on April 26 the KCHS after -prom group be allowed to use the Rec Center "gratis." • . KENAI CITY COUNCIL MEETING MINUTES APRIL 161 1997 PAGE 12 • MOTION: Councilman Smalley MOVED to allow the KCHS after -prom group to use the Kenai Rec Center at no charge for their after -prom function. Councilman Bookey SECONDED the motion. No objections. 80 ORDERED. D-6. planning i Zoning Commission Councilman Smalley said minutes are in the packet. He said there had been a public hearing to rezone a piece of land off of Swires Road (Buffalo Run Subdivision) owned by Zubecks. The rezone was approved. D-7. Miscellaneous Commissions and Committees a. Beautification Committee - Bob Frates reported that there will be a volunteer orientation on May 13. Also, the new banners are finished and should be up by the first week of May or slightly sooner. There are 30 of them. Councilman Smalley announced that Merle Dean Feldman is retiring in June. He asked that the City send her a special letter of appreciation for the work she has done for the City. Congratulations were offered to Bob Frates on the birth of his son Tyler John last Saturday night. b. Historic District Hoard - Councilman Moore reported the next meeting is May 19. o. Challenger Steering Committee - No report. d. Kenai visitors and Convention Bureau Board - Councilman Bookey reported there are no minutes in the packet, but there should have been. The Board approved the strategic plan. The Board is not happy with the proposed budget and will appear at the work session tomorrow night. e. Alaska Municipal League - No report. None. ITEM Q: OLD SU8INE88 None. • • KENAI CITY COUNCIL MEETING MINUTES APRIL 16, 1997 PAGE 13 E-1. Bills to be Paid, Sills to be Ratified MOTIONS Councilman Smalley MOVED to pay the bills and Councilman Bookey SECONDED the motion. There were no objections. 80 ORDERED. E-2. Purchase Orders Exceeding $2,500 MOTIONS Councilman Measles MOVED to approve the purchase orders over $2,500 and Councilman Smalley SECONDED the motion. Councilman Measles MOVED to amend the list of purchase orders over $2,500 by adding the purchase order to Worthington Ford for $21,050 for purchase of a 1997 patrol package patrol vehicle. Councilman Smalley SECONDED the motion. No objections to amendment. No objections to motion. 84 ORDERED. 8-3. Ordinance No. 1737-97 - Amending the Official City of Kenai Zoning Map for Certain Lands, F80 Subdivision No. 6, Located within the El/2 NE1/4 Section 32, T6N, R11W, S.M., City of Kenai, Kenai Recording District, Kenai Peninsula Borough, Alaska. • Introduced by Consent Agenda. H-4. Ordinance Noo-1738-97 Increasing Estimated Revenues and Appropriations by $15,180 in the Congregate Housing Enterprise Fund for the Replacement of Thirty-nine Windows. Introduced by Consent Agenda. E-5. ordinance No. 1739-97 - Amending the Official City of Kenai Zoning Map for Certain Lands, Buffalo Run Subdivision, a Replat of Tract uA" Swires Subdivision Located within the NEi/2 SW1/4 Section 35, T6N, R11W1 S.M., City of Kenai, Kenai Recording District, Kenai Peninsula Borough, Alaska. Introduced by Consent Agenda. • • KENAI CITY COUNCIL MEETING MINUTES APRIL 16, 1997 PAGE 14 B-6. Discussion - City of Kenai Fuel Supply. City Manager Ross said Administration is asking for direction from Council as to whether the diesel fuel should be dispensed from the City tanks. Administration's proposal, he stated, is that the gasoline supply contract for the City be re -bid and -that the City restore two of its present tanks at the City Yard to dispense diesel. Councilman Bookey said if the diesel goes out to bid, there is only one viable vendor for diesel in the area. But he said he supports taking the diesel back into City facilities and bidding the gasoline. Councilman Smalley said he is concerned about diesel on the ground. "It would be nice to get out of the fueling business because of the potential hazard." Councilman Bannock said he doesn't like the idea of the City being in the diesel business either, but he doesn't see any better option and would reluctantly support Administration's proposal. Bannock also asked about rack prices. City Manager Ross said his proposal is to bid the gasoline based on the Tesoro refinery price in Nikiski; every vendor in town except MAPCO bases their prices on that. Ross said that Tesoro's price is a fair standard to use. Council directed Administration to proceed per Ross' 3/26/97 memo. Councilman Smalley asked that ITEM J-1 be moved to here. There were no objections. J-i• 1. Citizens: Alejah Devito from EDD spoke. She said EDD intends to go out to construction bid for the Business Innovation Center on Friday. Also, she announced that the selection committee for a new CEO met on April 10 and decided they wanted to search for more applicants. For now Jeff Murphy, President of EDD Board, will be acting as the interim CEO. EXECUTIVE SESSION REs MOTION$ Inlet Woods Litigation Councilman Smalley MOVED for an Executive session to matter which would have a financial impact upon the asked the City Manager, the Finance Director and th Attorney to be present. Councilman Bookey SECONDED No objection. 80 ORDERED. e discuss a City. He City the motion. �J KENAI CITY COUNCIL MEETING MINUTES APRIL 16, 1997 PAGE 15 RECESSED AT 9141 P.M. RECONVENED AT 10 s 39 P.M, Councilman Measles reported that the Inlet Woods case had been discussed and Council gave Administration directions as to how to proceed. ITEM is ADXXNX8TRhT10N_ RZ3?0ATS I-1. Mayor - Report about Russian trip has been handed out. 1-2. City Manager - No report. I-3. Attorney - No report. I-4. City Clerk - The Boys & Girls Club of the Kenai Peninsula has requested a $500 donation from the City to sponsor the AL$AR Litter Crew Program. Council directed the Clerk to do the purchase order to pay the $500. I-5. Finance Director - No report. • I-6. Public Forks Director - a. Dunes Project: Final inspection was held on April 11, 1997. Additional concrete pads are needed to support the concrete piles. The contractor will do it at the bid price. Council did not object. b. Mission Street Project: DOT is working on final approval and utility agreements. SHIPO has changed their position from no lighting to approval of some types of lighting. DOT is sure they will pave this year. c. New Dock Rate Schedule -In packet. d. Corps of Engineers Kenai River Reconnaissance Navigation Study: This is the study the City requested a couple of years ago. It is a study to see if a major study is warranted. The major study is estimated at $425,000, with half the cost being non-federal. e. HEA drinking water and waste water needs assessment survey will be sent to some city residents. They are only interested in areas not served by the City (e.g., VIP). HEA will send Kornelis an explanation and a copy of the survey for next council meeting. I-7. Airport Manager - On June 4 and 6, 1997 the DOT is holding their advanced airport and safety and operations specialists school in Anchorage. This a first in Alaska. Would the City of Kenai like to host the welcoming reception on the night of June 4? Ernst said many of the people attending this school would also be candidates for ARFF. He said he would like to do a purchase order taken from Airport contingency fund and KENAI CITY COUNCIL MEETING MINUTES APRIL 16, 1997 PAGE 16 • move it to advertising for this event. Also, he said, he and Chief Burnett are on the agenda for the school program to give a report about the training center. Council agreed. J-1. (moved to before Executive Session) J-2. Council. Bookey - Moore Nothing. - Nothing. Measles - He will be absent from the first Council meeting in May. Bannock - Nothing. Smalley - The new bike paths are badly cracked. Many folks are out using the paths. Bob Frates said he has talked with George Church and the state is not going to maintain the path. Frates said his people could go ahead and sweep. Smalley said the walks are deteriorating rapidly. Also, in late August there will be a conference of mayors and AML board meeting in Kenai. The City may be asked to host a reception for may 50 or 60 people. ITBM R a ADJ4QRI�1MgN'1' The meeting adjourned at approximately 10:55 p.m. Minutes transcribed and submitted by: 0